At least recently, new cars loan often have interest in the range of <3%. I have one car loan at 0.9%; and my last two before that were at 1.9% and 3.9%. But

At least recently, new cars loan often have interest in the range of <3%. I have one car loan at 0.9%; and my last two before that were at 1.9% and 3.9%. But I think most importantly, a mutual fund is much more liquid than a car (or a house). If I had the choice between pre-paying $11,000 towards a car loan and sticking money in the bank; I would probably choose to stick it in the bank or a mutual fund. I always have the option of paying down a car loan if I want, but once I pay it down, I no longer have the cash. Stuff happens, and the utility of having the cash is more than potential savings from not paying a small amount interest for a few years.